This is the sobering reality - or wake up call if you prefer - attached to the Liberal notion that in order to resolve poverty and wealth distribution
issues, Governments should quickly and materially increase mandated minimum wages...
Nearly half of Washington, D.C. employers said they have either laid off employees or reduced the hours of employees to adapt to the District
of Columbia’s minimum wage hikes since 2014, according to a report from the Employment Policies Institute. The minimum wage in the District of
Columbia has increased from a $8.25 hourly rate in 2014 to the current rate of $11.50 per hour.
So, what is a Democrat Politician to do, in response to this decline in employment due to a 39% increase in the minimum wage? Why, increase it by
another 30%, of course!
Mayor Muriel Bowser advocated a $15 minimum wage in her State of the District address earlier this year.
And while you are at it, why not impose more employee benefit burdens on employers...that should help even more.
Why not just make the Minimum Wage $25 per hour?
In recent months, the City Council in D.C. has considered enacting a number of new labor mandates, including a higher minimum wage, a bill
that would fine employers for schedule changes, and a family leave policy funded by a tax on employers,” the report says.
Because, you see, businesses by and large are are just exploiting their workers and keeping all of the excess profits for themselves. Wages and
benefits are not business expenses that form a material component of the overall Cost of Products/Services that determine at what price a business can
profitably sell their outputs - competitively against business rivals domestic and foreign.
Oh no, artificially raise wages by 40% or 50% or 70% and employers will simply raise their prices tomorrow to restore their profit margins and
everybody wins. Right? Wrong!
What Bernie and the other forces of the (loonie) left are not telling you is:
1) Demand goes down as price goes up...when demand goes down, sales go down...and with that in-kind reductions in demand for labour
2) Employers who want to continue to compete (in the real dog eat dog world that we live in...not the socialist paradise that the left believes can be
force fed), will find ways to escape the imposition of artificially high minimum wages (contracting out, cutting service, increasing workloads,
3) Employers who can't compete anymore, where their industry provides the opportunity, will seek out lower cost alternatives to local labour (buying
foreign made components/services - or moving their production facilities to lower-cost labour markets).
If you don't believe me that this is the result, just ask the employees who have lost their jobs in Washington DC since 2014 - or any of the millions
who have lost their jobs because their employers moved their plants to Mexico or China or Vietnam (etc.)...or the millions more who lost their
businesses (and the employees of those businesses) because their clientelle are now out of work and can no longer afford to frequent those
I bring all of this up because people in the United States have some very important decisions to make in November - and they need to be thinking about
all of the "free stuff" being offered by the Left as the solutions to what ails people...Government-mandated higher wages (free money!!), immediate
elimination/drastic reduction of carbon-based sources of energy (save the planet!!), free College education (excellent, everybody can go to college
for nothing, get their Phds...and then go to work for McDonalds at $15 per hour - problem solved!), free Health Care for everybody, food stamps
galore...how about a "guaranteed minimum income" - now we're talking!!
The problem with all of this utopian thinking in America is...the rest of the world is happily filling the vacuum with their low quality, low wage, no
health and safety, no working conditions standards, no environmental standards, pilfered technology, currency manipulated products and services -
which America happily allows in the name of Globalism and "Free Trade".
Yup...think long and hard about how you cast your ballot this year folks. Just remember what usually happens when kids jump into a van with somebody
who is offering them free candy...